Insuring your Vacation Property

When school is out, summer is officially underway. (Isn't the blog photo just dreamy.)  For many of us, that means a vacation to the beach or the mountains – and maybe a dream to own a permanent getaway there. 

There are more than 7.15 million second homes in the U.S., as of 2020, which doesn’t reflect the increase in second home ownership in recent years, driven by the pandemic and remote work trends.  

Like your primary home, insurance is required for a second home, vacation home or rental property. You’ll need coverage for damage to the structure, as well as personal property insurance and property liability. Ideally, you’ll want to insure your second home with the same company as your primary home to obtain the best pricing.

Depending on where your second home is located and how you plan to use it, you may need insurance to cover specific risks. 

For example, a property located on a lake will likely require flood insurance. A beach home will require coastal home insurance, specifically designed for homes near the water with heightened risk of windstorm and water damage, and may include specific deductibles and exclusions. 

A home that is left unoccupied for long periods of time may require extra coverage for burglary and theft. 

Thinking of renting your second home when you’re not using it? That’s another consideration for insurance, since you are technically a landlord and your rental property is a source of income and risk. 

Insurance is always personal and specific to your individual needs. If you are considering a second home soon or in the future, don’t just focus on vacation mode. Talk with your trusted Allen Tate Insurance agent about coverage options and costs to protect your investment. 

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